According to Thompson-Reuters, German chemicals manufacturer Evonik announced plans to acquire cosmetic ingredient supplier Dr. Straetmans GmbH for nearly 100 million Euros ($107 million); although the companies have not officially disclosed the purchase price.

Straetmans specializes in alternative preservatives for the cosmetics industry, and in a press statement, Evonik noted the acquisition will complement its broad specialties portfolio and further consolidate its position as a leading global partner for the cosmetics industry. The transaction is subject to approval but expected to be finalized in the first half of 2017.

“Dr. Straetmans is a perfect match, both strategically and culturally, for us," said Hans-Josef Ritzert, of Evonik's Nutrition & Care management board. "We intend to develop the company’s business globally beyond its existing markets in Europe and the United States."

Straetmans' Hamburg site will become Evonik’s global competence center for preservative solutions. “Our aim is to offer cosmetics manufacturers new solutions enabling them to distinguish themselves from the competition,” said Tammo Boinowitz, who leads the personal care business at Evonik. “In the future, we will be able to offer complete formulation systems, including preservation. In doing so, we make an important contribution to optimizing our customers’ development work.”

Reuters added that this follows last year's agreement by Evonik to acquire the specialty and coating additives operations of U.S. industrial gas producer Air Products and Chemicals for $3.8 billion, also to boost its cosmetics ingredients business. Evonik declined to comment.